A released terrorist claims that the Arab Bank in Ramallah refused to transfer the monthly salary he receives from the Ministry of Prisoners into his private account, calling the salary "terror money."

Each of the 26 terrorists released in the second batch of "gestures" to the Palestinian Authority (PA) received a $50,000 grant. In addition, those imprisoned over 25 years received senior governmental posts with a 14,000 shekels ($4,000) monthly salary, and those imprisoned under 25 years are to receive a monthly 10,000 shekels ($2,800) stipend.

All of this comes despite high unemployment among PA Arabs and the PA's reported $4.2 billion of debt.

The Arab Bank's refusal to pay "terror money" to Musa Karan of Ramallah, a terrorist freed after 23 years in jail, was reported by a Hamas website. Karan's brother Mohammed told the site that Musa ran into trouble opening an account due to his being a freed terrorist.

The bank's designation of Karan's salary as "terror money" comes after Deputy Defense Minister Danny Danon on Monday called for an end to international monetary aid to the PA until it stopped funding terror.

In April the Jordan-based Arab Bank lost its bid to avoid a US trial over lawsuits brought by Israeli and American terror victims who accuse the bank of financially supporting terror. The bank operates in many countries, managing business ties with various corporations and governments.

However the US Supreme Court in August threw aside the claims of more than 6,000 Israelis in the case, making up more than 90% of the lawsuits, saying that foreign complainants can not sue the Arab Bank in the US.